Africa's potential 'born digital' trade agreement: The African Continental Free Trade Area Agreement has the potential to be innovative in its conception as a 21st century arrangement and become the world's first 'born digital' trade agreement.

• Author: Atkinson, Craig
• Position: SPECIAL REPORT

The African Continental Free Trade Area (AfCFTA) agreement, presently signed by 52 African Union (AU) member states, is remarkable in its geographic coverage and ambition to create a single market for the continent. The agreement's extensive protocols will cover trade in goods, trade in services, investment, competition and intellectual property rights.

Following its ratification by the Gambia in April 2019, the agreement is now set to shift the nature of economic relations in the region: intra-African trade is expected to rise by more than 50%. The AfCFTA also has the potential to be innovative in its conception as a 21st century arrangement and become the world's first 'born digital' trade agreement.

TRADE CHALLENGES

Free trade agreements, negotiated for the benefit of businesses and consumers, can be challenging to understand and apply. Even legally trained experts may find it difficult to navigate the complex array of interactions between different trade agreements and domestic rules. These issues are compounded by the reality that legal texts are often difficult to access--whether unavailable electronically, not up-to-date or not easily searchable.

Survey data from the 2018 ECORYS Study on the use of Trade Agreements Final Report suggests that key barriers to the use of free trade agreements include limited availability of information and that information is difficult to understand. This can mean intended beneficiaries do not use the agreements to their advantage, undermining expected economic and social outcomes.

While effective use of the rules presents a challenge for all businesses, it is especially problematic for micro, small and medium-sized enterprises (MSMEs). This is due to the resources they require for interpretation, determination of calculations and compliance with documentation. As the majority of businesses in Africa are small, the AfCFTA must target these enterprises to meet its objective to 'promote and attain sustainable and inclusive socio-economic development'. Fortunately, legal technology can improve access to, and the functionality of, trade agreements for different user groups, including enterprises, customs agencies and policymakers.

A 'BORN DIGITAL' AGREEMENT

A 'born digital' AfCFTA would make the agreement easier to access, understand and apply. At the most basic level, this would imply the creation of an authorized 'machine consumable' translation of the text. Such a computer-friendly version of a trade...